Mutual Coventry BS, the UK’s 8th biggest mortgage lender, reported rising mortgage lending and savings balances, but profits of £159m in the first half down from £269m last year.
It attributed the tumbling profits to an “exceptional operating environment” over 2023 where base rates stabilised, retail savings competition increased and mortgage customers repriced to lower-margin products.
Steve Hughes, chief executive of Coventry Building Society, said: “I am delighted to report that the society has continued its sustained record of delivery in the first six months of the year.”
He added: “We have grown mortgages and savings in a market where economic uncertainty persists and continued to offer great value products and exceptional service to our members.
“The society has recorded a strong financial performance in the first half of 2024 and further enhanced our capital position. We are making good progress to complete the acquisition of The Co-operative Bank in the first quarter of 2025.”
The mortgage lender, which completed £8.3bn in gross lending in 2023, taking a 3.7% market share, said mortgage balances increased by £1.1bn or 2% in H1 to £51.4bn.
It said this was due to a robust mortgage pipeline, improved retention and a conscious and disciplined approach to lending that reflects current market conditions and the needs of its members.
Savings balances on the rise
Savings balances grew by £1.2bn (2.6%) to £48.8bn, driven by higher savings rates than the market average and “exceptional service”.
It increased the premium paid to members from £163m to £195m, which equates to an additional 0.87% in interest against 0.79% in H1 last year.
Its net promoter score (NPS) improved to +79, up from +76 the year before, adding that its “continued investment in our people and technology helping to reduce average call answering time from 105 to 62 seconds.”
The mutual was also recognised by consumer value publisher Fairer Finance for outstanding mortgage and savings customer experience receiving gold ribbons in both categories.
The society’s arrears figures are low at 0.31% of mortgages more than three months in arrears, although up from 0.26% in 2023.
In May, Coventry signed a share purchase agreement to buy The Co-operative Bank, the 13th largest UK mortgage lender by outstanding mortgage balance. This is expected to complete in Q1 2025.
It said: “This will increase both the group’s mortgage and savings presence and extend the society’s propositions into the personal current account and business banking markets.”
Victoria Hartley is contributing editor at Mortgage Solutions, Specialist Lending Solutions, Your Money and Your Mortgage at London-based publishing company AE3 Media.
She has an MA in Radio from Goldsmiths after gaining a 2:1 in a Comparative American Studies BA at Warwick University. She also holds a TEFL qualification and taught overseas in Mexico and Japan from 1994 to 1997.
Her role includes editorial oversight of the news, analysis and features, event content management and strategic and editorial consultancy for the AE3 Media group. She is an experienced video, broadcast and live-event host and regularly chairs web and podcast debates and interviews.
Multiple award nominations have resulted in two wins: Santander Media Awards, trade journalist of the year and Headlinemoney Awards, mortgage journalist of the year (B2B). Here is one of the award-winning pieces: https://www.mortgagesolutions.co.uk/news/2011/07/21/exclusive-tale-bailey-fraud-witness/
Previous roles include editorships of Mortgage Solutions, consumer title What Mortgage and trade title Credit Today as well as a stint freelancing for a variety of outlets including The Guardian and Which? Money.
